Bank of Valletta Plc has announced the issue of a maximum of €50 million in Subordinated Notes maturing in 2030 featuring an annual coupon of 3.50%. The new Notes will be issued in one or any combination of the following Series 1/2016, Tranche 2 and Series 2/2016, Tranche 2.
The Notes are complex financial instruments and may not be suitable for all types of retail investors (please refer to Important Notice and full Prospectus).
In addition, the Company has announced its intention to reserve €39,908,300, equivalent to approximately 79.82% of the maximum aggregate nominal amount of Notes to be offered under any one or a combination of Series 1 and 2/2016, Tranche 2. These will be reserved in favor of those Applicants of Series 1 and 2/2015 Tranche 1 Notes whose applications were scaled down and not allotted the full amount applied for.
Issuer: Bank of Valletta Plc
Aggregate amount: €50,000,000
Coupon: 3.50% per annum
Face Value Denomination: €100
Issue Price: €100 (par)
Maturity: 08 August 2030
Interest payment date: 08 February and 08 August 2016, and on the same days thereafter until maturity
Minimum Investment: Series 1 – €25,000 and multiple of €100 thereafter
Series 2 – €5,000 and multiple of €100 thereafter
Additional Important Notes: Series 1’s subscriptions will require any successful applicant to maintain, at all time, a minimum balance of €25,000 even once the Notes are admitted to trading on the secondary market at the Malta Stock Exchange
The Company intends to use the net proceeds of the sale of the newly issued notes to further strengthen the Issuer’s tier 2 capital requirements imposed by the European Banking regulations. Furthermore, part of the net proceeds will be used to meet the bank’s general financing requirements.
Deadline for Submission of Applications
18 March 2016 – Deadline for subscription lists for both the general public offer, and the scaled down applicants
A copy of the Final Terms for series 1 and 2/2016, Tranche 2 dated 19th February 2016 are available to download here:
For more information please contact us on 25 688 688 or [email protected].
The Notes are complex financial instruments and may not be suitable for all types of retail investors. To evaluate suitability the financial advisor needs to assess the below key areas on behalf of potential investors.
1. the potential investor’s knowledge and experience to understand the related risks
2. the Notes meet the investment objectives of the potential investor
3. the potential investor is able to bear the investment and financial risks
Experienced investors, who are not seeking financial advice, will still need to demonstrate that they are familiar with these type of complex financial instruments by disclosing their knowledge and investment experience prior to placing orders.